Agenda Packets - 1987/12/14 - Laserfiche WebLink

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City of Mounds View, Minnesota December 10, 1987 those excess debtr1 ll be service if needed or to to create a debt service reserve fund to help pay ay to prepay bonds if sufficient funds are available. There is no absolute guarantee that the City will never have to levy a tax to pay debt service. ations of the City, if all of the guarantees prove insufficient, e bonds he City eral is ultimately responsible fordthe repayment of the bongs. The security measures sfken on b, and mithe nimize thehowever possibil ty of comparison City to mast other municipalities, y 9, support. In September, 1986, the City formed the tax iThe find financing district whicas h will generate the revenues to repay these bonds. The financing district qualifies he a "redevelopment district" within the Statutes, which permits the life of the ty has selted a maturet ithint15 years of 1ssuonce, so thlat the District can bet havingicy of bonds to exeno for ears. The closed out early and the property put back on the general tax rolls. Appendix I is our projection of the reven.:s which will be received by the Di"lict from tax increments created by the phases of construction beginni g in 1990, e le OISO assumes inflation will he values by 2%u that,each year. The ill rote of 110 issue wi,ich is the approximate m ll�rate .4r properties llwil schedule also assumes a thin the City for t xescollected in 1987. No adjustment has been made to these numbers, and no attempt has I: 'n reflect changes in the fmadeormulaathat he State hassde ellopedtforttaxespay ble n1989valuation try to alter and beyond. It is our understanding that those changes will alter the assessed y ssed valuati ntaxes paid is upward and the mill rates 4ownward, but generally the overall level of property expected to be the some. The first phase of development, shown in Column 5, is for work to be completed duringe new be the rolls as January1288989,hfor taxes wt. thhsbuildings 9. Te value of will be leviedied n the llfall ofn1981 for collection i collect on n 1990. The final phase will be construction completed during 1991, with the value completion of the threerphases,,9t1heforede redevelopment contracr taxes to be tand�thelgassessm92. ent ti Colue ne 10 reflects rthe incrementalinimum increaseincomebthat�swill beadevluat elopedion of $ffom8,8h4s valuation, plus the projected inflation of valuation over the life of the bonds. This is the income that will be used to repay s. he Appendix II is the projected cash l Column 10e sealsoservice shown as Columns 10 of income generated in Appendix ' the City will not begin collecting incremental Appendix II. As discussed previously. income until the year 1990. There will be interest payments due o e the bonds during the time when no incremental income will se received. In order to assure that no tax levies will be required to pay the debt service, there is included in the bond issue $1,651,000 of capitalized interest which will be set aside to pay the interest on the bonds until the incremental income bands will be August I, 1is is shown in Column 7. The first interest pay he bo nt w due A February 1, and semiannually thereafter. The first principal pay 1992, after completion ip l ayment phase can befmadetbeginning Once the 3. third Asstaated is in place, major principal payments Page 3